Peco cuts power rates
Panay Electric Company Inc. (Peco) yesterday announced the reduction of P0.6788 per kilowatt hour (kWh) in the Generation Component of the electric bills of its thousands of consumers starting this month of August.
With the reduction in the generation charge, PECO consumers will be paying P8.2661 for every kilowatt hour they consume this month, down from the former rate of P8.9449 last month. Distribution charges, however, remain at there present rate of P0.7978/ kWh.
"This significant reduction is realized due to the procurement of power from the National Power Corporation," Peco management said in its press statement.
Peco entered into an interconnection agreement with the Napocor power plant in Dingle and the Transmission Corporation (TransCo) last June 26, 2007. At present, Napocor and TransCo supply 30% of Peco's power requirements. Panay Power Corporation accounts for the 70%
The reduction is the result of Napocor's lower rates, which is at P3.45/kWh plus 1.75% value added tax, Engr. Randy Pastolero, Peco's executive vice-president for audit, explained.
The reduced rates would be maintained in the subsequent months for as long as there are no significant fluctuations in the cost of generating power, namely fuel and supply of electricity from both Napocor and PPC, he said. Should Napocor produce less electricity, Peco would be buying more from PPC at a higher cost.
He stressed though that the continued interconnection with Napocor is likely to result in more power rate reductions.
At present, negotiations are underway for the extension of the one-year interconnection agreement with Napocor and TransCo and an increase in the supply.
They are already initial talks between us, Pastolero said.
They aren't much problem with extending the period. What's left is the capacity of Napocor to give us an additional of at least five megawatts and TransCo's distribution lines, he said.
He pointed out that TransCo's substation in Sta. Barbara town could only handle 17 MW. With the increase of at least five megawatts to the present load of 15 MW, it exceeds the allowable load on TransCo's lines, Pastolero said.
Mayor Jerry Treñas welcomed Peco's rate reduction. He said, though the reduction costs only a few centavos it is still a big help to consumers.
He was also grateful that the interconnection between Peco and NPC bore fruits.
Treñas was instrumental in the interconnection of Peco with NPC.
The mayor was forced to intervene in the delivery of Peco's services because of the frequent brown-outs in the city. The unstable power would affect the business activities in the city and could suppress the entry of more investors here. Peco was then getting its power load from Panay Power Corporation (PPC).